IMF to support Madagascar's economic program for 2006/08
25 Jul '06
3 min read
The Executive Board of the International Monetary Fund (IMF) has approved a three-year, SDR 55.0 million (about US$80.8 million) arrangement under the Poverty Reduction and Growth Facility (PRGF) for the Republic of Madagascar to support the government's economic program for 2006-2008. The first disbursement under the arrangement will amount to SDR 7.9 million (about US$11.5 million).
The Executive Board also noted the authorities' intention to activate the Trade Integration Mechanism (TIM) in light of the possible impact on Madagascar from the end of textile quotas of the Agreement on Textiles and Clothing of the World Trade Organization in 2005 and the implementation of the U.S. African Growth and Opportunities Act (AGOA) in 2007. Should the impact of these measures be greater than anticipated, the TIM's deviation feature would allow an augmentation of the PRGF by up to 10 percent of quota, or SDR 12.2 million (about US$17.9 million).1
Following the Executive Board's discussion on July 21, 2006, of Madagascar's IMF-supported economic program, Ms. Anne O. Krueger, First Deputy Managing Director and Acting Chair, said:
"The Malagasy authorities are to be commended for their commitment to reform and for taking strong measures to accelerate the country's economic development. The new three year arrangement under the Poverty Reduction and Growth Facility and the activation of the Trade Integration Mechanism (TIM) will assist them in making progress toward achieving the Millennium Development Goals (MDGs) by supporting sustained private-sector led growth, promoting fiscal consolidation, strengthening the financial sector and reducing the country's vulnerability to exogenous shocks.
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